Helen of Troy reports rising sales and profits

The personal care and houseware provider said that for the quarter ending on November 30, net sales increased by 2.0 percent, up from $185.6m to $189.4m, while net sales for the nine months increased 2.3 percent to $495.5m.

Net third quarter sales for the company’s mainstay personal care business fell by 4.4 percent, from $140.4m in the corresponding period for 2008, to $134.2m, while sales for the first nine months fell by 1.8 percent to $347.0m.

In contrast the company’s houseware division showed robust growth, with sales increasing 21.8 percent to $55.2m and up 13.4 percent for the first nine months to $148.4m.

Houseware division buoys weak personal care sales​

The strong performance of the company’s houseware division served to buoy the overall results, helping the company to achieve overall sales growth.

Company CEO Gerald Rubin said that the personal care results had been impacted by 'poor retail economy' during the course of 2009, but revealed that he was more optimistic about the outlook, given the improving economic conditions.

Third quarter net profit increased a healthy 66.7 percent to $24.73m, while profit for the first nine months of the financial year increased by 79.0 percent.

Reduced expenses boost profits​

Rubin attributed the rising profits to reduced expenses, citing a reduction in selling, general and administrative expenses during the quarter as being the main factor for the increased profitability.

The results for the first nine months of the year contrast favorably with the previous financial year when full year sales fell 4.6 percent to $622.7m and a net loss of $56.8m was recorded.

However, despite the fact that the jump in profits for the latest quarter was dramatic and topped analysts’ expectations, the rise in sales disappointed the investment world, consequently sending share prices falling.